3 FTSE Shares Hitting New Highs

Published in Investing on 15 October 2012

J Sainsbury (LSE: SBRY) and Dixons (LSE: DXNS) are soaring.

The FTSE 100 (UKX) is tentatively on the march today, edging to 5,818 at the time of writing, and up 25 points. It's nudging ever closer to its 52-week high of 5,989 points -- how soon will it make it?

If bullishness in the general markets still looks a little cautious, investors are pushing individual shares up to new highs every day. Here are three from the FTSE indices that are scaling fresh heights today:

Dixons

Dixons Retail (LSE: DXNS) is still powering on, hitting a new high of 21.9p in what is one of the best retail recoveries of recent years -- the shares have more than doubled from their 52-week low of 9.1p.

City sentiment towards the share has improved, too, with forecasts suggesting earnings per share growth of around 25% this year with close to 40% pencilled in for next. There's little in the way of dividends expected yet, but with a PEG ratio of 0.6 for the year to April 2013, falling to 0.3 for 2014, the share is pretty much priced as a growth-at-a-reasonable-price bet.

Sainsbury

Supermarket J Sainsbury (LSE: SBRY) has had a cracking few months, and has gained around 25% since June to hit a new peak of 357p. That would be a good ride for a small-cap growth share -- but it's remarkable for a £7 billion FTSE 100 company!

Forecasts look pretty good, too, and even after the price rise, the forecast full-year dividend still stands at 4.7%. Meanwhile, the P/E ratio looks to be 12.

It's interesting to compare Sainsbury with Tesco (LSE: TSCO), which offers a similar yield of 4.8% with the shares on an even lower P/E of 9.5, but Tesco's shares are still languishing after their January slump.

If you want companies paying decent dividends, such as these two supermarkets, the Motley Fool report "8 Shares Held By Britain's Super Investor", which looks at the holdings of ace dividend investor Neil Woodford, is well worth a read. Click here to get your free copy, while it's still available.

Prudential

Prudential (LSE: PRU) is also rubbing up against its 52-week high, reaching 855p today for a rise of around 50% from its low point back in December. It really shows how much the financial sector is back in favour, with forecasters expecting a dividend of over 3% for the full year, rising to around 3.5% for 2013 -- and the payout should be very well covered.

With the financial and other sectors recovering nicely, they could help you to your first million from investing. This Motley Fool report tells you how to achieve that feat, so click here to get your copy while it's still free.

Further Motley Fool investment opportunities:

> Alan Oscroft does not own any shares mentioned in this article. The Motley Fool owns shares in Tesco.

Share & subscribe

Comments

The opinions expressed here are those of the individual writers and are not representative of The Motley Fool. If you spot any comments that are unsuitable hit the flag to alert our moderators.

 

There are no comments yet - why not be the first?

Join the conversation

Please take note - some tags have changed.

Line breaks are converted automatically.

You may use the following tags in your post: [b]bolded text[/b], [i]italicised text[/i]. All other tags will be removed from your post.

If you want to add a link, please ensure you type it as http://www.fool.co.uk as opposed to www.fool.co.uk.

Hello stranger

To add your own comment, please login.

Not yet registered? Register now.